Abdul Karim says the state govt prefers ‘discreet’ discussions as not to create a furore over the issue

by DASHVEENJIT KAUR / Pic by MUHD AMIN NAHARUL

The Sarawak state government plans to discuss with Datuk Seri Mohd Najib Razak over the state’s proposed sharing mechanism of the tourism tax revenue, which will be implemented on Sept 1.

Sarawak’s Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah (picture) also said the state government preferred “discreet” discussions as not to create a furore over the matter.

He said the Sarawak government had accepted the implementation of the tourism tax, but would continue to demand for a higher percentage from the revenue derived from the levy.

“Sometimes it is better to discuss such matters discreetly behind closed doors (with Najib) and avoid other issues like, why the other states do not get the same amount,” Abdul Karim told reporters during the Malaysian Association of Tour and Travel Agents Fair media briefing with the Sarawak Tourism Board.

Abdul Karim said it was best for the state to discuss the matter with Najib as the tax collection will be done by the Finance Ministry and Najib is the finance minister.

He said the Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz had accomplished his task by getting the Tourism Bill passed in Parliament.

“Now, the authority to collect the tax is under the Ministry of Finance, hence, I don’t think Mohamed Nazri should be making any remarks on this,” he said.

He was responding to a question about the soon-to-be implemented tourism tax and the state’s preparation for the bed tax.

Sarawak and Sabah had voiced their unhappiness over the proposed RM1 share for every RM10 collected for the bed tax. Instead the two states had asked for at least 30% of the collection from the bed tax.

Abdul Karim said the state recognised the need for the government to seek revenue to improve the overall tourism industry, but considerations should be given for Sabah and Sarawak.

“Sarawak and Sabah have been aggressively promoting their tourism packages overseas themselves, unlike the states in Peninsular Malaysia which were promoted by Tourism Malaysia.

“This is why the Sarawak government wants the tax to be waived for the state until April 1, 2018, because many of the local tour agents and hotels have made forward bookings and paid for their packages until early next year,” he said.

“That is the reason why we do not want the tax to be ‘bulldozed’ through without consultation and discussion on the finer points,” he said.

Abdul Karim said the voices of industry players and the Sabah and Sarawak governments on the tax collection and disbursement should be heard and considered and not just the ‘voice of one those who want to rush into decisions’.

He said the federal government will be fair in its consideration and the prime minister (PM) will listen to their side of the story.

Foreign tourists will be charged a flat fee of RM10 per room per night irrespective of the star rating of a hotel starting next month.